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HomeMy WebLinkAboutAM Lease of a new accounting software system STWTown of Westlake To: Honorable Mayor and Members of the Board of Aldermen From: Trent Petty, Town Manager Subject: Meeting of August 11, 2003 Date: August 6, 2003 Consider a Resolution authorizing the Town Manager to purchase hardware and enter into a contract for the lease of a new accounting software system. Staff recommends approval. The Town has used the QuickBooks accounting software package since 1996. While this is a sufficient software package for the typical small business, the Town's current accounting and reporting needs exceed the capability of QuickBooks. Although Westlake is a small town in terms of population, the complexity of our accounting more closely resembles that of a larger city. Two companies have given presentations to the Town's management and accounting staff. After careful review of software capability, expandability, and overall cost, staff recommends the procurement of the software package from Stw, Inc. located in Grapevine. Since it's inception in 1978, Stw has proven itself by producing quality municipal software packages. Stw currently supports the accounting systems of over 20 cities and utility districts in North Texas, including Grapevine, Lewisville, and Keller. Their office proximity to Westlake makes it ideal from the standpoint of service and support. The modules will be custom tailored to accommodate the Town's specific needs, eliminating the "one size fits all" software philosophy. The software is expandable, allowing the addition of new modules as the town takes on more responsibilities, e.g. utility billing and Academy accounting. The system is leased from the company at an annual cost $4,500 after an initial set-up cost of approximately $37,850, which is inclusive of all hardware and training. The annual cost will remain the same for 3 years; thereafter the lease will follow the consumer price index, approximate increases of 5%-6% annually. The quote also includes the transfer of balances from QuickBooks to the new system prior to our current year-end. Upon completion of this transfer, we will be able to begin the new budget year using this system. There are funds available in the contingency line item of the current budget and staff finds this to be a valid use of the funds. General Ledger / Project Acc2gR1jM Foundation of every accounting system. All other modules interact with the General Ledger systems according to their function. It summarizes all of the transactions, providing an accurate, timely picture of the Town's fiscal activities. Budget Preparation and Control: Assists in the preparation of our annual budget. Currently, this process is a manual, labor-intensive process. The use of this module will reduce staff time involved in the manual production and maintenance of the overall budget. This module also provides the ability to review budget vs. expenditures at any time. Account Payable & Encumbrances: Handles the daily functions of Accounts Payable and interacts with the General Ledger and Budget modules. Payroll Processing / Benefit Management: Enables the Town to be completely self- reliant in both payroll processing and benefit management. Savings will be realized in the first year due to the ability to administer our own -flexible spending plans and eliminate a third -party service for transmitting payroll for direct deposit. Cash Receipts / Revenue Accounting: Facilitates daily cash management of each Town department. Reporting Tool® Generates user -defined reports for the General Ledger and all Capital Projects. This tool will reduce employee overhead by automating reports that are currently being generated manually on a monthly basis. Fixed Asset Module / Inventory Tracking: Helps in the tracking of fixed assets and the calculation of depreciation schedules. This will be essential for the implementation of GASB 34. Inventory tracking will enable the Town to bar code and track the location of all furniture, fixtures, and equipment. Powerhouse License: This license is the run-time engine that reads and converts the programming language of the software into a functional program. Kvocera Laser Check Printer: This is a printer specifically designed for the printing of checks. Checks are printed on plain paper, eliminating the need to house and protect pre- printed blank check stock. This printer also generates check copies automatically. This printer will pay for itself within a few years by eliminating check printing costs and potential blank check fraud, as well as doubling as a network printer for the accounting department. IBM iServer Platform: Server is the recommended stand-alone server recommended by STW. This server has been proven to be very reliable with a long service life. General Ledger/Project Accounting Module Budget Preparation and Control Accounts Payable & Encumbrances Payroll Processing/Benefit Management Cash Receipts/Revenue Accounting Reporting Tool Fixed Asset Module/Inventory Tracking Powerhouse 4 th Generation Programming License Kyocera Laser Check Printer IBM iServer Platform $ 3,340 1,670 1,920 4,370 1,280 2,765 2,500 4,605 7,000 8,400 Total Costs: $37,850 This software package will greatly enhance the professionalism and reporting accuracy of the Town. With the inception of GASB 34, public entities are subject to increased reporting disclosure requirements to the public. Implementation of this software will be a necessary step for the Town to achieve these goals. This along with the fact that this product should more than pay for itself over the next few years in decreased audit fees, increased productivity, and decreased payroll and printing costs is a valid explanation for the staff s request to enter into this contract.